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xchrom

(108,903 posts)
Sat Jun 16, 2012, 05:47 AM Jun 2012

DAVID ROSENBERG: These 3 Charts Prove We're Living In A Modern-Day Depression

http://www.businessinsider.com/david-rosenberg-chart-economy-modern-day-depression-2012-6

The U.S. economic recovery has been weak, unemployment rate has been stubbornly high, and income inequality has been surging. We know this.
But three charts from Gluskin Sheff strategist David Rosenberg's latest report show 1) the share of personal income from government transfers like welfare and social security and 2) the spike in "soup lines" made us gasp. Rosenberg writes:
"Government transfers to the personal sector now makes up nearly one-fifth of total household income. That is incredible. Even Lyndon Johnson, the architect of the Great Society, would blush at that statistic.
...The reason why nobody considers this to be a modern-day depression is because nobody can see the soup and bread lines that were so visible during the 1930s. That’s only because these days, you receive your bread and soup from Uncle Sam either electronically or in the mail."
Here's the chart from Gluskin Sheff that shows the shocking rise in transfer payments to personal income:




And this chart shows the surge in the number of food stamp participants:


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DCBob

(24,689 posts)
1. The first graph is good news... it shows we are past the peak and coming down.
Sat Jun 16, 2012, 07:17 AM
Jun 2012

The other two graphs are misleading since they just show raw totals. Of course totals will increase over time since population increases over time as well. These should be shown as percentages.

Also, the Obama administration has been actively promoting use of food stamps. Im sure that has had an impact on the numbers as well.

 

MannyGoldstein

(34,589 posts)
2. Or graph 1 shows that our government is cutting off aid to the poor,
Sat Jun 16, 2012, 09:47 AM
Jun 2012

And generally tightening its belt, practicing austerity-driven Hoover-nomics. Which would be consistent with the continuing increase in poverty, homelessness, and hunger that we're seeing.

Green shoots or austerity?

DCBob

(24,689 posts)
3. It would be helpful if you could document your claims.
Sat Jun 16, 2012, 10:38 AM
Jun 2012

There have been some cuts but I doubt that would account for that rather large drop shown in graph 1.

DCBob

(24,689 posts)
8. The issue you brought up earlier was cutting off aid to the poor.
Sat Jun 16, 2012, 01:10 PM
Jun 2012

This graph refers to a decline in overall federal spending which appears to be mostly a result of "winding down of defense spending in the mid-east".. according the article.

nashville_brook

(20,958 posts)
4. we might not have soup lines, but that's b/c there's no soup...what I see every morning
Sat Jun 16, 2012, 10:39 AM
Jun 2012

are homeless people lining the sidewalks downtown b/c the mission makes them leave during the day. but we don't "see" them. they don't exist. and they're not in line for anything b/c there's no help for them.

jwirr

(39,215 posts)
9. Even in small communities in rural areas there are churches that have regular free/donation meals
Sat Jun 16, 2012, 02:50 PM
Jun 2012

for those who need them. Food Stamps are our modern form of bread lines. The safety net is what keeps us from looking like we did in the 1930s.

 

4th law of robotics

(6,801 posts)
6. Does the first chart include social security?
Sat Jun 16, 2012, 10:53 AM
Jun 2012

If so we would expect it to steadily rise as more and more boomers hit retirement.

And the next two really ought to be percentages rather than total numbers. Even if people were doing as well as they were in let's say 1970 the population has increased by over 50% since then so the total number of people on assistance would have been expected to increase.

You can't just look at the raw numbers for these things.

JDPriestly

(57,936 posts)
7. Does this include Social Security and Medicare payments?
Sat Jun 16, 2012, 11:19 AM
Jun 2012

Also, what about government subsidies and tax relief for business?

Are those included as hand-outs?

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